Leslie-Anne Scrogie
Dec. 19, 2022
It’s not over. You still have a few more days to do great things for your finances. Try these last minute money moves and exit 2022 on a financial high note!
Make a meaningful donation
If you have the flexibility in your budget to prioritize a donation, do it! Now more than ever before, charitable organizations need support, and it doesn’t matter what amount you can give, it’s all going to make a difference.
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My pro tips to maximize your charitable impact are, first, to consolidate your giving. Rather than giving small amounts to many charities, choose one or two organizations that are in greatest need and that align with your values, and give a larger amount to those. Second, ensure the organization is registered, so that you will receive a charitable tax receipt. Third, get your donation in before the end of the year so that it counts for the 2022 tax year. Fourth, consider monthly donations going forward, so that you can work the amount into your budget, and the organization can rely on your giving throughout the year, not just during the holiday season. Last, check if your employer has a matching program for donations. If so, ensure you get your receipts into your employer promptly, so that the organization you are giving to gets that money, too.
Top up your child’s RESP
Don’t miss this year’s opportunity to benefit from the Canada Education Savings Grant. When you contribute to your child’s Registered Education Savings Plan (RESP), your money is matched 20 per cent (up to $500 in the year per child). When invested well, that money will grow tax-deferred until the money is withdrawn for your child’s future education costs. Depending on your family’s income level, the Canada Learning Bond might also be available to your child. The deadline to get your contributions in for 2022 is December 31.
P.S.: If your family isn’t sure what to get your child as a gift for the holidays, suggest an RESP contribution!
It’s always a good time to put more money into your savings …
… and it’s an extra great time to benefit from interest rates that are higher than we’ve seen in years. Right now, many financial institutions are offering promotional rates (extra interest for a limited time, such as five months), bonus rates (for example, if you continue to grow the account month over month, they will add even more interest) and other “sweeteners” (perhaps, if you move your money to the institution, it will add an additional $200 to your account after three months). Many of these offers are for a limited time (maybe until the end of this year,) so check out what’s available and get on top of making your savings work for you.
Pro tip: if your emergency fund is just sitting there doing nothing, consider moving the fund to a reputable institution where you can make the most money from interest in a savings account, while still having access to it in the event of an emergency, and having CDIC (Canada Deposit Insurance Corporation) coverage. (This is a form of federal insurance for your savings account balance. Note that provincial credit unions offer slightly different coverage).
Use up your wellness benefits if you would benefit from it
Can you squeeze in that overdue chiropractic treatment, counselling session or dental appointment, before the end of the year? Have you applied for your wellness benefit or lifestyle spending account through your employer yet? Are your benefits claims up to date? Depending on your benefit plan, it might just renew at the end of this year and that could mean you would need to take advantage of your benefits before the end of the year, if you have a legitimate need for the support. This isn’t me recommending you to do anything illicit with your claims; it’s about using what you and your family need in order to be well.
Is it time to take that capital loss?
Your portfolio may have been significantly affected by the market volatility in 2022. If you happen to have earned a higher income during the year, one of the ways to reduce your tax bill is to sell underperforming securities held outside of your registered investment accounts (so, not within your TFSA or RRSP). Seek advice from a professional investment adviser before you make any decisions about selling at a loss. And note that you have to do this selling and have the transaction settled by Dec. 31, 2022, which means you likely want to make this move at least three business days before the end of the year.
There is always room to do some great, less obvious things for your money, such as use up your points for groceries or gifts, do any returns and get refunds, purge and sell unused items in your home, and use coupons and price comparisons, to make absolutely sure you are getting the best prices for everything this season.
Enjoy the festivities and welcome abundance these holidays!
